Iam looking into buying a existing salon
They are asking $240,000. It grosses $265,000
net is about $120,000. Has been in business for about 14 years. I have already looked at there computer records for the past 3 years and that is what it is showning. This is as far as i have got so far i havent brought in the accountant yet to see taxes and bank statments but so far thoses are the numbers. Location is great right next to a busy shopping center and gym is next door. Based on theses numbers is that to much ???Any advise please??

It is standard to ask double the net for any business...But questions need to be asked...Why selling? How long has the gym been there? How long is left on the current lease? How long does the gym have left on its lease? Does it plan on moving? Is there room to expand or rearrange salon if equipment upgrade is needed? Just because that is the asking price doesn't mean that's what the market calls for.

So double the net sounds like the standard. I was already thinking of the gym thing i will look into the gym lease with the property managers. There is room to expand it is a smaller salon with like 7 rooms and a stand up, and a air brush room. I would like to reconfigure it and add a magic tan booth since they are not to big but do they require plumbing and all??? and maybe do away with the air brush. And possibly try to find room to add in a high pressure bed other than that it would take time to upgrade the equipment. I think i just needs some TLC. Location has been there 14 years owner says he is tired and wants to pursue other things, I really dont blame him but that is a question if he is making money then why not just keep it and start something else huh???

Correct...most people don't sell money makers so look at the numbers closely...Think to yourself if you would sell off something putting 140k into your pocket, when you could pay someone say 40-50k to run it and still pocket 90-100k...doesn't make sense to me.